barry jackson runs some numbers and scenarios ...
The two financial advantages the Heat have in keeping Whiteside
There will be considerable debate inside the Heat over the next six weeks about how much to offer
Hassan Whiteside when free agency begins July 1.
The Heat values him but someone who has spoken to the team's front office said he believes the Heat will try to convince him to take something less than the max deal he almost assuredly could get elsewhere.
(Whether the Heat will go to the max, if Whiteside balks at something less, remains to be seen. And of course, all this is moot if the Heat can sign Kevin Durant, which is Miami's No. 1 priority in free agency. If Miami can sign Durant, keeping Whiteside becomes highly unlikely. That's why the Heat needs a read on Durant before it can move forward with Whiteside.)
Whatever Miami decides to offer Whiteside (and that’s undetermined), the good news is that NBA rules allow Miami to pay Whiteside more than any other team can give him.
What’s more, even if the Heat doesn’t offer Whiteside the max (and it has the cap space to do so), a deal close to the max would earn more money for Whiteside over the next four years than a max deal with other teams would, in most cases.
Here’s why:
• Though both the Heat and other teams can offer Whiteside a contract of no more than four years, the Heat (because it has his Early Bird rights) can offer annual 7.5 percent raises over his first year salary, whereas other teams can offer only 4.5 percent annual raises, cap expert
Larry c00n confirmed.
The first-year max salary for Whiteside will depend on the final cap number and could fall between $21.6 million (c00n’s estimate) and $23 million. If it’s $21.6 million, the Heat could offer Whiteside a four-year, $96.1 million contract; other teams could offer no more than $92 million over four years.
If it’s a $23 million first-year max, the Heat could offer $102.32 million over four years; others teams could offer no more than $98.17 million over four years.
• Only seven states don’t have a state income tax, and only four NBA teams play in those states (the Heat, Spurs, Mavericks and Rockets). So those teams can realistically pay players more than others.
During
Carmelo Anthony’s 2014 free agency, SI.com broke down how much Anthony could make (after taxes) by signing with the Knicks and Heat. Remember that Anthony could sign for five years with New York, only four with Miami.
If only the first four years were calculated, the Knicks could have paid Anthony $99.9 million, compared with $95.9 million for the Heat. But once taxes were factored in, Anthony would have pocketed more with the Heat over those first four years ($55.3 million) than with the Knicks ($51.6 million) even though the Knicks were paying him $4 million more in salary!
And with Whiteside, the difference in income would be even more pronounced between what he would earn with the Heat and what he would earn in states with high income taxes, because unlike with Anthony, the Heat would be the team with the ability to offer 7.5 percent annual raises, compared with 4.5 percent for others.
So if Miami tries to persuade Whiteside to sign for less than the max, expect the Heat to point all of the aforementioned to Whiteside and agent
Sean Kennedy.
Because Whiteside doesn’t have full Bird rights, the Heat has to fit his salary under the cap unless he takes 104.5 percent of the league average salary (about $6.5 million). And he’s not taking 104.5 percent of the league's average; his market value is obviously far above that.
A friend says Whiteside, who’s a bargain at $981,348 this season, likes it here and reveres
Pat Riley. The question is this: Will that, the larger percent annual raises and lack of state tax be enough to sway Whiteside if Miami’s offer is several million dollars less that what he can get elsewhere.
Incidentally, opponents shot 54 percent from less than five feet against the Heat when Whiteside was on the court this season, 58.9 otherwise. That 54 percent was better than every starting center except
Tim Duncan, Andrew Bogut and
Rudy Gobert.
In the playoffs, opponents shot 53.5 percent within four feet and 30.9 percent from five to 9 feet with Whiteside on the court, 55.2 and 48.7 otherwise. And that doesn’t even take into account the shots Whiteside’s presence discourages opponents from taking.
The two financial advantages the Heat have in keeping Whiteside | Sports Buzz